No Fiduciary Duty In Wal-Mart Seller Contract: Judge

Law360, New York (April 19, 2010, 4:46 PM EDT) -- A federal judge has found laundry detergent maker Simplicity International did not have a fiduciary relationship with packaging company Genlabs Corp., whose defective labeling job allegedly caused Simplicity to lose about $6 million in sales to Wal-Mart Stores Inc.

The relationship between Simplicity and its contractor Genlabs Corp. was “simply an arms-length contractual relationship,” Judge Stephen V. Wilson of the U.S. District Court for the Central District of California said in an opinion Friday.

The decision dismissed a breach of fiduciary duty claim in a contract...
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